Bentley: 'I did not instigate" changes at RSA

New panel must approve fund chief's investment decisions

Alabama Gov. Robert Bentley

AP photo

By Phillip Rawls | The Associated Press

Published: Wednesday, December 18, 2013 at 3:30 a.m.

Last Modified: Wednesday, December 18, 2013 at 1:00 a.m.

MONTGOMERY | Gov. Robert Bentley said Tuesday that his disagreement with state pension fund Chief David Bronner over expanding the state Medicaid program had nothing to do with new controls being placed on Bronner’s investment authority.

“I did not instigate that,” Bentley said.

Bronner, chief executive of the Retirement Systems of Alabama, has criticized the governor for not expanding the state Medicaid program under the federal health care law. In a speech in June in Tuscaloosa, he called governors who turned down billions in federal money “idiots.”

Bentley, a physician, has said repeatedly that he won’t expand Medicaid because the program is broken and the state can’t afford it.

Bentley recently appointed three new members to the board that oversees the state pension fund for education employees. On Dec. 12, one of the Bentley’s appointees, state Revenue Department official Curtis Stewart, got the board to approve a resolution saying its three-member investment committee must approve any investments made by Bronner.

Stewart said the resolution wasn’t aimed at anyone but that the investment committee should be looking at what is happening. The resolution takes effect Feb. 1. Bronner, who has operated with broad authority for many years, is supposed to figure out a way to make the new system work.

In an interview Friday, Bronner said he believes the Medicaid dispute was probably a factor in what happened, but he said it also resulted from the Retirement Systems not hiring a member of Bentley’s staff for a high-ranking job.

Bentley said Tuesday that he didn’t know about the resolution until he read about it after the meeting. He also said the resolution was not political. “There is no major investment company that does not have a team that looks at investment strategy, and everyone has to have oversight and input from some kind of investment committee.”

A separate board oversees the investment of pension funds for state employees. That board is scheduled to meet Jan. 30 to discuss controls.

Bronner has had struggles with governors and others through the years over control of the $28 billion pension fund. The most recent was in January, when Bronner accused the executive secretary of the Alabama Education Association, Henry Mabry, of trying to wrest control from him. The battle was settled in May when the Legislature removed Mabry from the Retirement Systems board.

<p>MONTGOMERY | Gov. Robert Bentley said Tuesday that his disagreement with state pension fund Chief David Bronner over expanding the state Medicaid program had nothing to do with new controls being placed on Bronner's investment authority. </p><p>“I did not instigate that,” Bentley said. </p><p>Bronner, chief executive of the Retirement Systems of Alabama, has criticized the governor for not expanding the state Medicaid program under the federal health care law. In a speech in June in Tuscaloosa, he called governors who turned down billions in federal money “idiots.” </p><p>Bentley, a physician, has said repeatedly that he won't expand Medicaid because the program is broken and the state can't afford it. </p><p>Bentley recently appointed three new members to the board that oversees the state pension fund for education employees. On Dec. 12, one of the Bentley's appointees, state Revenue Department official Curtis Stewart, got the board to approve a resolution saying its three-member investment committee must approve any investments made by Bronner. </p><p>Stewart said the resolution wasn't aimed at anyone but that the investment committee should be looking at what is happening. The resolution takes effect Feb. 1. Bronner, who has operated with broad authority for many years, is supposed to figure out a way to make the new system work. </p><p>In an interview Friday, Bronner said he believes the Medicaid dispute was probably a factor in what happened, but he said it also resulted from the Retirement Systems not hiring a member of Bentley's staff for a high-ranking job. </p><p>Bentley said Tuesday that he didn't know about the resolution until he read about it after the meeting. He also said the resolution was not political. “There is no major investment company that does not have a team that looks at investment strategy, and everyone has to have oversight and input from some kind of investment committee.” </p><p>A separate board oversees the investment of pension funds for state employees. That board is scheduled to meet Jan. 30 to discuss controls. </p><p>Bronner has had struggles with governors and others through the years over control of the $28 billion pension fund. The most recent was in January, when Bronner accused the executive secretary of the Alabama Education Association, Henry Mabry, of trying to wrest control from him. The battle was settled in May when the Legislature removed Mabry from the Retirement Systems board.</p>